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Is the Swedish Model Still Alive?

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Abstract

Baumol’s cost disease is a wellknown theorem, but its consequences are rarely addressed in economic-political discourse. This paper highlights the implications of Baumol’s cost disease and shows that in real terms the once so celebrated “Swedish Model” has lost its exclusive position relative to other European countries. Even worse, since 1995 Swedish welfare services has in general lost in content when measured in constant prices. This is further aggravated when counted per capita, especially when it comes to elderly care where demands have increased with the growth of the population in higher ages.

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  • Ljungberg, Jonas, 2026. "Is the Swedish Model Still Alive?," Lund Papers in Economic History 263, Lund University, Department of Economic History.
    • Handle: RePEc:hhs:luekhi:0263
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    References listed on IDEAS

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    1. Andreas Bergh, 2014. "What are the Policy Lessons from Sweden? On the Rise, Fall and Revival of a Capitalist Welfare State," New Political Economy, Taylor & Francis Journals, vol. 19(5), pages 662-694, September.
    2. Torben M. Andersen & Claus T. Kreiner, 2017. "Baumol's Cost Disease and the Sustainability of the Welfare State," Economica, London School of Economics and Political Science, vol. 84(335), pages 417-429, July.
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    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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